SA's retirment fund industry is tops

By Staff Writer

South Africa's retirement fund industry is ranked among the 15 largest retirement fund industries in the world, according to the Association for Savings and Investment SA (ASISA) and the Actuarial Society of SA.

A recently published study the parties involved said that the retirement fund industry has eight million members and assets that were under management were close to the value of R2 trillion.

"The independent study by Compass Management Consulting was commissioned by the savings and investment industry with the aim of providing much-needed information on the administration cost of pension schemes to help inform the retirement reform debate."

The study showed that, when you take into consideration the unique constraints to South Africa, the local standalone pension fund schemes were managed on a more cost effective basis than some of their international counterparts, especially in cases where schemes had less than 10 000 members.

Umbrella funds, on average, however, appeared to not have reached economically viable levels of operation, according to the statement.
The actuary behind the study, Anton Davies said that the South African umbrella business was made up of many small disparate schemes, often with their own sets of rules.

"The proliferation of these small funds is the result of South Africa's unique economic landscape, which has resulted in a magnitude of small entrepreneurial companies."

Leon Campher, the CEO of ASISA, said the study clearly highlighted some of the strengths and weaknesses of the country's retirement fund industry.
"The South African retirement fund industry often stands accused of being inefficient and expensive.

"While this study, which is work in progress, shows that South Africa compares well internationally, it also highlights areas that can be improved."

Recent Articles

Featured Register your customary marriage or lose the right to inherit estate

December is that time of the year when we will see at least one suitor sending his uncles to negotiate the price of his future wife. Lobola, as the bride price is known, has always been an important element of the African marriage.

Read more

Changing from one medical scheme to another - effortlessly

It is coming up to the end of the year and you might be looking to change medical schemes, or options within a scheme in preparation for the new year. While you don’t necessarily have to wait for year-end to do so, providers often recommend it.

Read more

Your guide to financially surviving Christmas

There are a few times each year where you need to dig deeper into your pocket and spend more money such as birthdays, anniversaries, and the Christmas period. Whether you celebrate this religious holiday or not, the festive period - depending on how you choose to spend it - means increased travelling, buying of gifts, entertaining, and eating out at restaurants.


Read more

Trump, Trump and a little bit of South Africa

What a November we had, with the rand staging one of its best months and closing below the R14.00 level. To be honest, this looked like quite a far-fetched possibility at one stage during the month. It seems that the tide has changed a little, even though it might be short lived since the US dollar bulls are not so sure of their case anymore.

Read more

Sign Up

To our weekly newsletter for advice you can bank on

Deals

Free iCollege Scholarship

Price: R600
When: Until 16 May 2019
Where: Nationwide

Telkom December Big Deal

Price: R459 pm
When: Until 31 December
Where: Nationwide

Money Savvy Kids Giveaway

Price: R450
When: 8 December
Where: Johannesburg (Milpark)